Abu Dhabi property prices report reveals “Mixed Trends”

March 28, 2018 12:53 pm

Based on an analysis of over 94,000 property listings on leading property portal Bayut.com, Abu Dhabi property rental and sales prices reported a fairly mixed trend in February 2018. The report gauged user interest in popular areas across the capital and compiled lists of top areas for renting and buying property in Abu Dhabi and the percentage change in prices compared to January 2018.

Based on our search volumes in February, Al Khalidiyah retained its lead position from January as the most searched-for area over the last month as well. Its proximity to the Corniche and a large variety of affordable housing and property types garnered the most user interest on Bayut. Rents for one-bedroom apartments in Al Khalidiyah dropped to AED 70k, the steepest decline in rents from last month. This is bound to further contribute to its increasing popularity among those looking to rent apartments in Abu Dhabi. Rents for two-bedroom flats in Al Khalidiyah remained stable at AED 95k.

Popular waterfront community, Al Reem Island, ranked second amongst the top areas to rent apartments in Abu Dhabi. Average rent for studio apartments in Al Reem Island reported no significant fluctuations from January, remaining stable at AED 55k. The only drop in rents was seen in two-bedroom apartments, where rents decreased from AED 110k in January to AED 107k last month.

Hamdan Street, Corniche Area and Khalifa City A were also among the most popular areas to rent apartments in the capital. These also reported slightly mixed trends, with a lot of the rent increases seen in these areas marginally offsetting the drops.

In February 2018, Khalifa City A ranked as the most popular area to rent villas in Abu Dhabi. The rents in this locality reported only slight drops with three-bedroom villas drawing an average annual rent of AED 135k, only an AED 10k decrease from January 2018. Five-bedroom houses also declined marginally, from AED 180k in January to AED 170k last month.

Mohammed Bin Zayed City (MBZ City) was the second most searched-for area in terms of renting villas in Abu Dhabi. The community’s spacious units and affordable housing make it a prime choice for larger families. The only major dip seen in MBZ was a steep decline in studio apartment rents, with a 3.7% increase in rents for one-bedroom apartments. Al Reef remains the third most popular area among users looking to rent villas. The average asking rents in this area reported no change from January. Three-bedroom villas in Al Reef posted annual rent of AED 120k, while larger four- and five-bedroom units were at AED 150k and AED 160k, respectively.

The most popular area in terms of buying apartments in Abu Dhabi, Al Reem Island reported only a minor drop in prices. Studio and one-bedroom configurations reported no change from January 2018, remaining stable at average property prices of AED 630k and AED 1M, respectively. Asking price for two-bedroom apartments dropped only slightly by 1.3% bringing it to AED 1.55M.

Al Raha Beach, Al Ghadeer, Masdar City and Yas Island were also top contenders in areas for property investments in Abu Dhabi. Apartments in these areas reported marginal decreases, with the only significant drop (4.6%) seen in Al Ghadeer’s two-bedroom apartments.

Villas in Al Raha Gardens generated the most number of searches on Bayut. The buying price of three-bedroom villas in the area increased by 5.45% to AED 2.9M, while five-bedroom houses in Al Raha Gardens also reported a 4.38% hike, going up to AED 4.2M in February 2018. Four-bedroom units reported no change in average sale price, remaining stable at AED 3.4M.

The second most popular area for buying villas in Abu Dhabi, Al Reef also reported a similar trend with minor increases in prices of three- and five-bedroom villas, going for AED 1.65M and AED 2.45M, respectively. Four-bedroom villas in Al Reef also remained unchanged, posting a buying price of AED 2.15M in February.

Saadiyat Island and Yas Island rounded off the list of popular areas to buy villas in Abu Dhabi. Property prices in these areas reported a net increase, with only a slight drop in buying price of four-bedroom villas in Saadiyat Island.

Based on these trends reported across the capital, it is safe to say that the Abu Dhabi real estate market will remain a sound investment choice for property buyers. While there have been some increases, rents and sale prices have remained quite stable. This trend will likely through the first quarter of 2018, with drastic changes surfacing only after the influx of off-plan properties in popular areas.

Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Abu Dhabi.

Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.

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